Ethereum (ETH), like most crypto assets, is currently consolidating. There is little fundamental news driving prices at present and the best option for traders is to use short-term price levels to initiate short-term positions.
While there are several ongoing stories about Ethereum, none of them are currently driving the price. The ICO market has seen a recovery in May, which is helping to support the ETH price.
Successful ICOs on the Ethereum blockchain attract more ICOs, which in turn drives demand for ETH tokens. However, increasing numbers of blockchain projects hold ETH on their balance sheets.
They need to sell these to release working capital, and in the case of a downturn in the ETH price, there is a risk of these companies liquidating their ETH holdings. This dynamic is sure to lead to continued volatility in the price of Ether.
While there have been no major announcements with regard to addressing the scalability of Ethereum, scalability is also not currently a problem. Ongoing debates in the US over whether or not Ethereum is a security or a commodity are actually more likely to have implications for other coins than for ETH itself. Read more from globalcoinreport.com…
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